WallStSmart

Parker-Hannifin Corporation (PH)vsWatsco Inc (WSO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Parker-Hannifin Corporation generates 190% more annual revenue ($20.99B vs $7.24B). PH leads profitability with a 16.6% profit margin vs 6.8%. WSO appears more attractively valued with a PEG of 1.50. PH earns a higher WallStSmart Score of 55/100 (C-).

PH

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 8.0Value: 3.7Quality: 6.0
Piotroski: 5/9Altman Z: 2.78

WSO

Hold

45

out of 100

Grade: D+

Growth: 2.7Profit: 6.5Value: 5.0Quality: 8.5
Piotroski: 3/9Altman Z: 4.76

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PH3 strengths · Avg: 8.7/10
Market CapQuality
$105.45B9/10

Large-cap with strong market position

Return on EquityProfitability
23.8%9/10

Every $100 of equity generates 24 in profit

Operating MarginProfitability
21.5%8/10

Strong operational efficiency at 21.5%

WSO2 strengths · Avg: 9.5/10
Altman Z-ScoreHealth
4.7610/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

Areas to Watch

PH3 concerns · Avg: 2.7/10
P/E RatioValuation
30.9x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
3.232/10

Expensive relative to growth rate

EPS GrowthGrowth
-4.2%2/10

Earnings declined 4.2%

WSO4 concerns · Avg: 3.5/10
P/E RatioValuation
31.3x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
0.1%4/10

0.1% revenue growth

Profit MarginProfitability
6.8%3/10

6.8% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : PH

The strongest argument for PH centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 16.6% and operating margin at 21.5%. Revenue growth of 10.6% demonstrates continued momentum.

Bull Case : WSO

The strongest argument for WSO centers on Altman Z-Score, Debt/Equity.

Bear Case : PH

The primary concerns for PH are P/E Ratio, PEG Ratio, EPS Growth.

Bear Case : WSO

The primary concerns for WSO are P/E Ratio, Revenue Growth, Profit Margin.

Key Dynamics to Monitor

PH profiles as a mature stock while WSO is a value play — different risk/reward profiles.

PH carries more volatility with a beta of 1.18 — expect wider price swings.

PH is growing revenue faster at 10.6% — sustainability is the question.

PH generates stronger free cash flow (881M), providing more financial flexibility.

Bottom Line

PH scores higher overall (55/100 vs 45/100), backed by strong 16.6% margins and 10.6% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Parker-Hannifin Corporation

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Parker-Hannifin Corporation, originally Parker Appliance Company, usually referred to as just Parker, is an American corporation specializing in motion and control technologies. Its corporate headquarters are in Mayfield Heights, Ohio, in Greater Cleveland.

Watsco Inc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

Watsco, Inc. distributes air conditioning, heating and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico and Puerto Rico. The company is headquartered in Miami, Florida.

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